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Sustainability fund for Africa

Lereko Metier Sustainable Capital Fund (LMSC) is a prime example of how sustainability and investment return do not have to be mutually exclusive. The private equity fund makes investments to great effect in southern Africa in the areas of renewable energy, energy efficiency, water and waste management.

The aim of the fund is to counter climate change with its portfolio companies. The companies must demonstrate that they contribute to this in a suitable form. For instance, the fund invests in companies that efficiently promote the reduction of CO2 and other greenhouse gases, be it by investing in cleaner, efficient technologies or through projects for promoting renewable energies.

With its investments, LMSC aims to help meet regional development objectives and environmental commitments on location. For example it is ensured that new jobs will be created in future-viable sectors on an ongoing basis. Implementing best practice environmental and social standards – both at fund level and in the portfolio companies – also plays a major role.

DEG invests in solar thermal energy and wind power in South Africa

Through its participation in LMSC, DEG is investing in the Bokpoort concentrated solar power (CSP) plant in the South African province of Nordkap. The plant has a thermal energy storage capacity of 1,300 MWh, which can retain the energy for nine hours. This high storage capacity allows the CSP plant to provide electricity to more than 200,000 households in South Africa around the clock and, in doing so, to avoid at least 230,000 tonnes of CO2 a year compared with conventional power generation.

DEG has also invested in two wind parks in the Nordkap province. These two wind farms – “Khobab” and “Loeriesfontein 2” – consist of a total of 122 wind turbines. Producing green electricity in this way helps to avoid around one million tonnes of CO2.

The solar power plant and the two wind parks are being developed as part of REIPPP – the Renewable Energy Independent Power Producer Program. Initiated by the South African government in 2011, this programme aims to boost power generation capacity, to create jobs and to increase the share of South Africa’s energy mix represented by renewable energies.

DEG customer comments

"DEG offers us substantial added value, mainly with advice on environmental and social topics and with its extensive network in Africa."

Paul Botha, Co-founder and CEO, South African investment company Metier